Inflation Is Theft

[Dale-c]

This is a good article.

Let me know what you think, did you know that some one was stealing from you??

Many people know how to earn money, but few are aware of what the Federal Reserve System, acting on behalf of the U.S. Government, is doing to their money. It is inflating and depreciating the dollar at various rates – at double-digit rates during the 1970s and early 80s and at single-digit rates ever since. The present dollar is worth no more than 10 cents of the 1970 dollar and 50 cents of the 1980 dollar.

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[James_Newman]

Boy, I'm sure glad I don't have any money, or I might be inclined to be angry

 

[Daisy]

What are the alternatives? Stagnation or, worse, deflation?

I'm under the impression that slight inflation is the sign of a robust economy. It's bad for those on a fixed income and those who neither borrow nor invest, but an advantage for most everyone else.

I'm not talking about immoderate inflation like we had in the 80s. The Feds are pretty vigilant about preventing that these days.

 

[Dale-c]

What I think you fail to understand, Daisy is that our money is being diluted.
You see, then the Federal government can borrow money from the federal reserve, and the federal reserve merely prints new money, money that has no backing, they are diluting the value of all of the money in circulation.
It is called a "fiat" money.

It is a money without backing, it comes from nowhere.

Pr 20:23 Divers weights are an abomination unto the LORD; and a false balance is not good.

 

[Dale-c]

What are the alternatives? Stagnation or, worse, deflation?

I forgot to answer this directly.

The alternative is a Godly monetary system that is based on gold and silver, the way God intended.
One that can't be manipulated by the wicked banking system.
We have had this system so long that we can't even imagine anything different.

 

[Daisy]

Gold and silver are Godly?

They can certainly be manipulated.

 

[Dale-c]

Daisy, first of all, do you believe that our monetary system should be governed by the Bible? I mean is it moral or amoral?

 

[Terry_Herrington]

Boy, I'm sure glad I don't have any money, or I might be inclined to be angry

I know what you mean!:thumbs: :laugh:

 

[Daisy]

Daisy, first of all, do you believe that our monetary system should be governed by the Bible?

No, it should be guided by fiscal prudence and US law.

I mean is it moral or amoral?

Is or should be? Is - a mixed bag. Should be - there are too many differing opinions as to what is moral, immoral and amoral when it comes to government fiscal policy.

I do agree with Pr 20:23, that false accounting and crooked weights and are immoral - but that has nothing to do with the gold standard. Gold and silver don't have set, intrinsic value - their value flucuates with the market. South Africa has a major influence, if not the major influence, on gold prices. Tell the goldminers there how moral the system is.

 

[Magnetic Poles]

One way to help the fiscal health of the US is to quit borrowing for an immoral war on a nation that posed no threat to us.

 

[Gold Dragon]

I definitely prefer the constant predictable low level of inflation over the hyperinflation that would happen if the Federal Reserve didn't try to control inflation with interest rates or the shrinking economy and loss of jobs that would likely occur if they did their best to eliminate inflation.

Basing your economy on gold or silver puts your fiscal policy at the mercy of international mining companies.

The article shows a general lack of understanding of economic policy over the last few centuries.

Another thing to remember is that when inflation happens, the government also loses value. Nobody's money increases in value from inflation (so technically nobody is gaining or stealing) but historically inflation has been arguably correlated with the rate of growth of the economy.

 

[Daisy]

remember is that when inflation happens, the government also loses value. Nobody's money increases in value from inflation (so technically nobody is gaining or stealing) but historically inflation has been arguably correlated with the rate of growth of the economy.

Well....people who get mortgages to buy their homes benefit because they borrow money at today's better value and pay it back with future dollars which, with inflation, are worth less; meanwhile, if all goes well, the value of the asset has increased due to inflation. The mortgage holders don't lose because they receive interest; most the interest is paid way before most the loan is, so if that is reinvested, the mortgage holder also wins.

The Libertarians, some of them, will argue that the government is immorally subsidizing borrowers by guaranteeing the loans (under certain guidelines) and by regulating lenders on usury, rates, disclosure clauses and other fair lending laws, while most liberals applaud the same because it benefits society as a whole and the individuals who borrow at the expense of would be billionaires who would benefit from usury and deceit. Moral or immoral, depends on your pov.

 

[Gold Dragon]

Well....people who get mortgages to buy their homes benefit because they borrow money at today's better value and pay it back with future dollars which, with inflation, are worth less; meanwhile, if all goes well, the value of the asset has increased due to inflation. The mortgage holders don't lose because they receive interest; most the interest is paid way before most the loan is, so if that is reinvested, the mortgage holder also wins.

Agreed that borrowers benefit from inflation, but with a stable rate of inflation, it can be calculted into the interest by the lenders.

 

[Revmitchell]

One way to help the fiscal health of the US is to quit borrowing for an immoral war on a nation that posed no threat to us.

We are not at war with a nation.

 

[Magnetic Poles]

We are not at war with a nation.

You cannot be at war with a tactic, such as Terror, in the misnamed "War on Terror". We invaded Iraq. Last time I looked, that qualifies as a nation.

 

[StefanM]

You know anyone can just buy gold bullion if you want a personal "gold standard" of sorts.

 

[menageriekeeper]

That's true, Stefan, but they are going to have a hard time buying groceries with gold bullion!

Paper money is a means to an end. Without it we'd still be going to the market and bartering for everything we need/want. Yes, the government manipulates it to a certain extent. Yes the "value" of our dollar shifts in relation to the currency of other countries because of a host of reasons. But our society is such that a person must use currency when buying a selling. That's life, get used to it.

Btw, Dale, just where in the Bible do get the idea that God cares what kind of currency we use?

 

[Dale-c]

Btw, Dale, just where in the Bible do get the idea that God cares what kind of currency we use?

Just where do you get the idea that God doesn't care?
Since when do we put God in a little box called a Church and tell him he is not welcome anywhere else?

Mt 21:12 And Jesus went into the temple of God, and cast out all them that sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves,

Looks like he cared at least a little bit about such!

How about this:

Pr 11:1 A false balance is abomination to the LORD: but a just weight is his delight.

Christians seem quite content to put God in a little box and then make ourselves little gods in all areas of life outside that box, deciding morality for ourselves.

 

[Dale-c]

The article shows a general lack of understanding of economic policy over the last few centuries.

Quite the contrary, it shows much more understanding than most of economics.

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
Henry Ford

 

[menageriekeeper]

Now, now Dale, your scriptures are out of context.

What does Christ tossing out the money changers and a verse about cheating(and therefore stealing) have to do with the TYPE of currency a nation chooses to use?

Christ tossed the money changers because they were a) desecrating His temple and b) cheating people while they did it. He did not toss them because they were using the wrong type of currancy!

Christ also said to render to Cesaer what is Cesaer's. Our Cesaer (the US government) has choosen to use a paper currency that is currently not backed by gold or silver, but is money because the government says it is money and it is our government's RIGHT to do so!